Bitcoin declined 7.3% in October after breaking key support levels, with a Binance hack and weak inflation data cited as contributing factors.
Macro & Markets ·
Bitcoin declined 7.3% in October despite entering the month with three consecutive months of gains, breaking below key support levels and reaching a six-week low of $76,100 by month's end. The collapse was driven by a $6.3 billion hack at Binance and ETF outflows, which occurred on October 30. The decline was also preceded by the release of September inflation data that came in higher than expected, triggering a broader selloff after Bitcoin had briefly recovered to $85,000 on October 21.
The month upended the historical pattern of "Uptober," during which Bitcoin had finished six consecutive Octobers in positive territory, five with double-digit returns. October's trajectory saw BTC surge from below $83,500 to over $87,000 early in the month before reversing sharply, with the $80,000 support level ultimately breached on October 15 following the inflation data release.
November's performance remains unclear, with historical returns ranging from a 36% drop in 2018 to a 42% gain in 2020. The upcoming US mid-term elections and reported geopolitical developments are cited as potential sources of continued volatility.